Archive by tag: health fsaReturn
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The IRS recently released an information letter addressing the treatment of cafeteria plan forfeitures when an employer ceases operations and the plan terminates. Specifically, the letter clarifies that Section 125 of the Internal Revenue Code does not require that unused cafeteria plan funds be paid to the U.S. Treasury in these circumstances. How unused funds are disposed of when a plan terminates depends on what the plan document provides and the facts and circumstances at the time.
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Categories: Benefits in General, Compliance | Tags: cafeteria plan , forfeitures , irs , information letter , health fsa , flexible spending account , Section 125
That depends. The answer will be different if the employee has a cafeteria plan with runout, grace period or rollover.
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Categories: Benefits in General, Compliance | Tags: HSA , Health FSA , Grace Period , Rollover , Runout
Today the IRS announced under Revenue Procedure 2016-55, the 2017 annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules, and other tax changes. Included in the announcement is the inflation adjusted 2017 limits for health flexible spending accounts (FSAs) in an IRC §125 cafeteria plan and the Parking and Transit account limits in an IRC §132 Transportation Plan.
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Categories: Compliance, Health Care in General | Tags: Health FSA , Transit , Parking , IRS , 2017 Limits

End of Year ACA Guidance

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In mid-December, the IRS provided guidance in Notice 2015-87 applicable to a number of Affordable Care Act (ACA) provisions with references to prior guidance or clarification of prior guidance.
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Categories: Health Care Reform, Compliance | Tags: IRS , ACA , HRA , Reporting , COBRA , Health FSA , Affordable , Penalty

Health FSA Cap Raised to $2,550 for 2015

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The IRS has announced that the annual pre-tax election amount for an employee will be raised to $2,550 for plan years beginning on or after January 1, 2015.
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Categories: Health Care Reform, Compliance | Tags: IRS , Health FSA

Senate Bill Would Eliminate Health FSA Forfeiture

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Senate bill S.966, the Medical FSA Improvement Act, was introduced by Senator Ben Cardin (D-MD) along with Senator Mike Enzi (R-WY), on May 15th, to eliminate the Use-or-Lose rule from cafeteria plans and allow individuals to cash-out unused flexible spending arrangement (FSA) balances as taxable income.
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Categories: Benefits in General, Compliance | Tags: Health FSA

Uniform Coverage and the Health FSA

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The Uniform Coverage Rule requires that “the maximum amount of reimbursement from a health FSA must be available at all times during the period of coverage (properly reduced as of any particular time for prior reimbursements for the same period of coverage).” Prop. Treas. Reg. §1.125-5(d)(1).
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Categories: Benefits in General, Compliance | Tags: Health FSA , Uniform Coverage Rule
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